Oil and gas company Nexen has given £124million-plus contract for two UK North Sea platforms to United Arab Emirates (UAE) firm Lamprell.
Nexen’s Golden Eagle field wellhead and production, utilities and quarterdeck platforms will be built at Lamprell’s Jebel Ali yard in the UAE, it was announced today.
Start up on the £2billion Golden Eagle development, about 43 miles from Aberdeen, is expected in late 2014.
It is described as one of the largest in the North Sea and is expected to produce an estimated 140million boe – gross – of proved and probable reserves over 18 years.
Nigel McCue, chief executive at Lamprell, said: “Lamprell is delighted to announce these significant new contract wins and looks forward to working with Nexen on the successful delivery of these key projects.
“With these awards Lamprell now enjoys order book visibility extending into quarter two 2014, whilst remaining active with existing contracts and a strong bid pipeline.”
Lamprell’s first contract is for a two-level wellhead deck, measuring about 167 square feet and weighing about 4,000 tonnes. It is scheduled for completion in quarter two 2013.
The second contract is for a three-level production, utilities and quarters deck measuring 279ft by 131ft and weighing about 10,000 tonnes. It is due to be completed in quarter two 2014.
Nexen has said that more than two-thirds of the contracts for products and services on its Golden Eagle project are to be sourced in the UK, meaning work worth about £1.4billion coming the way of the domestic supply chain.
The UK Government has shown a strong interest in where contracts for work are awarded.
Nexen’s share of the £2billion total development cost for Golden Eagle, as 36.54% owner, is about £750million.
The Canada-based firm is one of the largest oil producers in the UK, primarily because of its massive Buzzard field.
Other partners in the Golden Eagle area development are Maersk Oil North Sea UK (31.56%), Suncor Energy UK (26.69%) and Edinburgh Oil and Gas (5.21%).
Lamprell employs more than 11,000 people across six facilities, with primary facilities in Hamriyah, Sharjah, and Jebel Ali, all in the UAE, and in Saudi Arabia.